Parliament – don’t vote single ringgit for RM2.3 billion Eurocopters without PAC/parliamentary approval

Public Accounts Committee (PAC) Chairman Datuk Seri Azmi Khalid has said that the Defence Secretary-General Datuk Abdu Bakar Abdullah will be among those called to assist the PAC to scrutinize the Eurocopter deal.

It is no exaggeration to say that this will be the most important investigation in PAC history, as for the first time since Merdeka 51 years ago, a major government contract – the RM2.3 billion 12 Cougar EC725 helicopter deal to replace the Nuri helicopters – will hinge on the report of the PAC following its scrutiny into the Eurocopter deal.

This is the only implication of the Cabinet decision at its meeting last Friday (17th October 2008) giving “the green light” to the PAC to investigate the Eurocopter deal.

Deputy Prime Minister and Finance Minister, Datuk Seri Najib Razak said in Pekan on Sunday that at his suggestion, the Cabinet “has agreed” to the PAC scrutiny as “it was better for the PAC to inquire into the deal”.

Najib said: “The PAC can make its own conclusion of the purchase after studying the various issues involved in the deal.”

This must means the suspension of the Eurocopter deal as well as a freeze on the Letter of Intent (LOI) issued by the Defence Ministry for the 12 Cougar helicopters, as it will be a mockery of the Cabinet decision as well as contempt of Parliament for the Defence Ministry to proceed with the deal without waiting for the outcome of the PAC investigation.

For this reason, it is not only MPs but the entire nation who are waiting for the outcome of the PAC scrutiny, as it is playing a very important role in the final decision whether the government should go through with the RM2.3 billion Eurocopter deal.

If the PAC and Parliament disapprove of the Eurocopter deal but the government persists in going ahead with the procurement, then Parliament should refuse to approve a single ringgit for the purchase of the RM2.3 billon Eurocopters.

Has the PAC the expertise among the PAC members to do a professional scrutiny of the Eurocopter deal and must they depend solely on professional and expert advice from the Defence Ministry and the Royal Malaysian Air Force in the inquiry?

It makes nonsense of an independent, professional parliamentary scrutiny of the Eurocopter deal if the PAC has to depend solely on the technical and expert advice of the Defence Ministry and the Royal Malaysian Air Force.

The PAC must have independent and professional advice from people knowledgeable and have working experience in the aviation industry, especially those who know about helicopter operations and the history of Nuri/RMAF such as an experienced helicopter pilot.

The PAC should not just summon the officials of the Defence Ministry and RMAF, but also call up representatives from the seven helicopter tender bidders, for they will be the best persons to inform the PAC about the tender process, particularly whether it had been one-sided or unfair.

One visitor to my blog has suggested one aspect of the helicopter procurement which the PAC should investigate, viz:

“The PAC needs to study not only the tender process itself but also the thinking and policies that generated said tender which do not address the needs of the nation or the Armed Forces adequately.

“The Combat in CSAR (Combat Search And Rescue) generally denotes the capability to retrieve personnel from hostile territory. Such helicopters are usually fitted with enhanced self-protection systems that are very expensive. The Nuri replacement does NOT need such systems as the likelihood of the RMAF conducting these missions is infinitesimal. In the trade, it is referred to as ‘gold plating’.

“What they do need is adequate numbers of aircraft to ensure availability and service coverage, which 12 does not.

“MINDEF has much more explaining to do than just how Eurocopter got the tender.”

Another comment on my blog touched on another area which the PAC must take on board in its scrutiny to ensure accountability, integrity and good governance, viz:

“The Defence Ministry Sec-Gen conveniently left out the fact that there is a middleman involved in this deal. We need to pressure the government to reveal who is behind this local company. Also, my understanding is that there is a separate contract for maintenance, spart parts and training which is separate from the RM 2.3 billion. We need to know which local company is involved in this separate contract.”

The PAC must able to address these issues in its report on the scrutiny of the Eurocopter deal.

According to Azmi, two days have been fixed for the PAC inquiry into the RM2.3 billion Eurocopter deal, next Wednesday and Thursday (Oct. 29 and 30), and he thinks that two days are adequate for the PAC to wrap up its scrutiny.

I am quite dubious that a two-day hearing is adequate.

The Defence Ministry secretary-general has issued a statement defending the decision to procure the Eurocopters after the evaluation of the seven bids in three parts – the technical evaluation committee, the offset evaluation committee and the price evaluation committee.

If the PAC is to do a thorough and professional scrutiny, it would have to study the seven tender bids and their respective merits in each of the three separate evaluation of technical, offset and price, including the submissions by the representatives of the seven helicopter tenderers.

Or is the PAC going to depend solely on the testimony from the Mindef and RMAF? Then the PAC will not be able to produce a satisfactory and acceptable report.

In any event, the PAC should table in Parliament its report on the RM2.3 billion 12 Cougar EC725 helicopter deal latest by end of November to allow MPs to study and decide whether to have a full debate of the PAC report before end of the budget meeting on Dec. 18, as under the Standing Orders, a 14-day notice is required for a motion to debate the PAC report, whether to accept or reject it.

  1. #1 by HJ Angus on Friday, 24 October 2008 - 1:30 pm

    There is a basic flaw in our defence strategy where we buy sophisticated equipment and then engage a contractor to provide services at an exorbitant fee.
    When a battle erupts, don’t expect that contractor to wait around.

  2. #2 by k1980 on Friday, 24 October 2008 - 1:30 pm

    RM2.3billion divided by 12 = RM 191,666,667 each. A F16 would cost much less! So that’s the reason petrol was hiked up by 78sen a litre on 8th March

  3. #3 by Mr Smith on Friday, 24 October 2008 - 1:39 pm

    I am one who will never trust this government in a 100 years. My prediction is, the PAC will be used to legitimize and justify a wrong.
    The final report: “Everything is above board. Case closed”

    PAC must have the “b*lls” to call a spade a spade but will it, when the protagonist in this deal is the PM in waiting.

  4. #4 by Bobster on Friday, 24 October 2008 - 1:41 pm

    2.3 billion ringgit equivalent to average RM85 per citizen paying for this multi billion ringgit dealing.

    Calling all Malaysians to find out how the government spending our hard-earned money!

    We shall not stand and watch these robbers to continue to rape and bankrupt this beloved nation.

  5. #5 by rider on Friday, 24 October 2008 - 1:54 pm

    for all we know, PAC will be made impotent!

  6. #6 by pulau_sibu on Friday, 24 October 2008 - 2:01 pm

    The people’s money
    The money of the poor Malay population
    See how the rich Malays robbed away the poor Malay’s money

  7. #7 by pakmang on Friday, 24 October 2008 - 2:22 pm

    Wow! This is how these people get rich so fast… costs but 1000% profits.
    What is happening to Malaysia? Everywhere & anytime I heard of these kind of “corruption”… real sick….

  8. #8 by PSM on Friday, 24 October 2008 - 2:24 pm

    Mr. Smith,

    You hit the “nail on the head”…the PAC will find that everything is “above-board” & “according to procedure” (as claimed by Najib already). Case closed!

  9. #9 by pulau_sibu on Friday, 24 October 2008 - 2:28 pm

    The royal families talking about racial issues, such as social contract, were not part of the sensitive issues or ISA? why? because they are above the laws?

    If such a contract exists for West Malaysia, how can Sarawakians be forced to swallow down something that we did not agree upon? This merging with the West to form boleh was really fishy. We may have to drag Lee Kwan yew in to explain about this issue.

  10. #10 by HJ Angus on Friday, 24 October 2008 - 2:34 pm

    Sounds like an inquiry, looks like an inquiry but sadly the same results like all inquiries in Malaysia.
    Remember the famous 2 Royal Commissions?

  11. #11 by Godfather on Friday, 24 October 2008 - 2:55 pm

    What’s so difficult with answering two basic questions:

    1. Who is the middleman, why and how much ?

    2. Who is the contracting party for the maintenance and training contract, why and how much ?

    If PAC can’t get the answers from the Defence Ministry, it can also get them from EADS, the parent company of Eurocopter. Being a publicly listed company, it can’t plead ignorance.

  12. #12 by ctc537 on Friday, 24 October 2008 - 3:08 pm

    I just can’t understand why does our country need to buy such expensive helicopters. Is Malaysia the first country going to buy Eurocopter EC 725 Cougar? Just enquire from other countries that have acquired such helicopters. Find out how much they paid for it and compare it with the price that we have to pay. The best way out is not buying them considering the present global financial crisis. To me, this is so perceptively simple.
    Should the government wants to buy them then please pay attention to maintanance and training really qualified personnel and pilots so that hundreds of millions can be saved. This is the people’s money and every ringgit has to be accounted for.

  13. #13 by newchief on Friday, 24 October 2008 - 3:14 pm

    Dtk LKS / DSAI
    Ref : EPF Loan of rm5billion to Valuecap

    Is this the correct way for BN to simply ‘force’ EPF for a loan of RM5billion just to push up the KLSI via Valuecap without going through proposal in parliament? If this is so, we fear that our hard earned ‘retirement benefits’ might go down to drains IF Valuecap doesn’t perform well !! if Valuecap can’t pay back or won’t pay back to EPF, all they need to do is go bankrupt – just as simple as that & giving excuses that they had invested in the wrong shares or blame it on the world. where can we poor people claim our money then ??

    also, EPF should have its expertise on investing and need not rely to borrow to Valuecap for easy gains as this is also a VERY HIGH RISKS LOAN!!! let’s say if everything goes smoothly and EPF can reap in the interest profits, i have my doubts that it will go into our accounts THOUGH ITS OUR MONEY THAT EPF IS USING ( WITHOUT OUR CONSENT!!! )

    i feel bn especially najib (now that he’s the finance minister) and the 2nd finance minister (not counting badawi) is not competent AT ALL in this field!!! they are using the easy way out (as always) to bozer through a plan without debating because they knew it will be met with tremendous objections!!

    i jz want to point out that if i want to borrow my OWN MONEY to reneovate my house from my EPF, they will say there is no such law !! but when they use my RM to loan to valuecap or any others or using it to spend lavishly, i cannot question their acts !!— IS THAT FAIR!!!! Dtk???

    i hope dtk will comment that najib and 2nd finance minister has abused their power to using the rakyat’s money without the rakyat’s consent and anyone involved should be coiled in (not to ACA bcs its their yea-men) but be dragged to Courts TO SUE THEM for using our EPF Savings !!! its like stealing our money !!! I hope Dtk can come up with a speech that will convince all especially the bn yes-men to sokong that najob and 2nd finance minister be sacked !!!

  14. #14 by helpless on Friday, 24 October 2008 - 3:45 pm

    Until the government agency prove there is a transparent evaluation process with indendendent expert recommendation and segregation of duty, it is reasobly to suspect all mega project undertaken for the last 10 years involved corruption. Government mega projects are funded by people’s money. There must be mechanisme to get a poll from the people to give consent to go ahead with the project.

    Forgive me, the stupid minister did not learn from the ” indelible ink ” project in the last GE.

    The “incentive”, polite term for corruption has became culture of Bolehland. The quick and effective way to resolve it is probably follow China’s practice of death penalty for major corruption among senior government officer.

  15. #15 by wanderer on Friday, 24 October 2008 - 4:01 pm

    In such difficult financial time, do we need these copters so urgently?
    Is’nt it better to concentrate on projects, which are of immediate needs beneficial to the people?
    The developed countries with their sagging economy are tightening their belt to cushion the global financial melt down, this government is on a spending spree to buy overpriced machines. Are we under any threat from our neighbors to justify this purchase…

  16. #16 by baoqingtian on Friday, 24 October 2008 - 4:36 pm

    No wonder they need to loan RM 5 billion from EPF to invest in the market. Whatever the outcome of PAC investigation, the government will go ahead with the purchase.

  17. #17 by aliew on Friday, 24 October 2008 - 4:39 pm

    Some time ago, there was a report about how Singapore Armed Forces can easily take down Malaysian defence in less than 24hours. It used to be a classical joke of the bragging Singaporeans, but no more. I’m worried.
    We are to spend 2billions for mere 12copters?
    Some points about its quality, but we have wide and porous borders. Shouldn’t it be more proportionally balanced between quality and quantity?

    The Indians have a deal for >100 units but still halted it.
    In India, it prohibits any third-party to be involved in a defence-related purchase.
    But here in Malaysia, is it tradition to pay the middle-man?

  18. #18 by max2811 on Friday, 24 October 2008 - 4:39 pm

    During my younger days, to pay our way out of a traffic offence, one has to pay RM5/. Now, it is about RM100/=.
    Conclusion: To corrupt a policeman #RM100/a land office pegawai#RM1000 to RM10000(depends on size and who is asking),
    To get a place in a premier school in Ipoh#RM3K to RM5K,
    An investigating officer(traffic or criminal)#RM10K to RM100K(depending on seriousness of case),
    To get an approval from a state exco#RM50K to RM500K?
    But for a UMNO ppl#RMmillions to RM billions. Wow! No wonder they kill to be elected!!

  19. #19 by Emily Pratt on Friday, 24 October 2008 - 4:45 pm

    Wanderer said: “In such difficult financial time, do we need these copters so urgently?
    Is’nt it better to concentrate on projects, which are of immediate needs beneficial to the people?
    The developed countries with their sagging economy are tightening their belt to cushion the global financial melt down, this government is on a spending spree to buy overpriced machines. Are we under any threat from our neighbors to justify this purchase…”

    Not from neighboring countries, but treat from our own Goons.. insider. We need Cougar E-75 whatever to combat these BALDIE ISA wielding T3RROR1ST.

  20. #20 by bclee on Friday, 24 October 2008 - 4:47 pm

    UK economy heading for recession now quarterly gdp just out on 4.30 est time -0.5% 2 quarter on negative area.

  21. #21 by anakpompuan on Friday, 24 October 2008 - 5:17 pm

    UMNO government has just given datukship to Shahrukh khan.
    Thus it is NOW appropriate time that the government must do the following:
    1. Abolish visa requirement (to enter and/or to stay and/or to work in Malaysia) for all foreign nationals married to Malaysian citizens for more than two years.
    2. Grant Malaysian PR to all foreign nationals married to Malaysian citizens for more than THREE years.
    3. Grant Malaysian CITIZENSHIP to all foreign nationals married to Malaysian citizens for more than FOUR years.
    4. Offer RM5 million bank loans/ mara loans / PNB loans to EACH of these special individuals (i.e. RM10 million per each of these families) to set up factories / businesses and/or high tech MSC status companies in Malaysia.
    5. Grant Malaysian datukship to all foreign nationals married to Malaysian citizens for more than FIVE years AND has given birth to at least one child in Malaysia.
    6. Appoint one representtaive in the parliement / senator to represnt all foreign nationals married to Malaysian citizens and also to address the issues concerning Malaysian citizens married to foreign nationals whether staying in Malasyia or abroad.
    7. Appoint one such foreign nationals (who can converse both in English and Bahasa Malaysia and has high regards for the Bumiputeras; and respects special rights of the Bumiputeras) to sit in the MT of UMNO.
    This way UMNO can get back its forgotten smile once more. Today UMNO is ALMOST sinking.
    These foreign nationals married to Malasyian citizens can play some role in SAVing the ship from sinking.
    It is still not too late to ensure that “ketuanan Melayu” (i.e. Malay supremacy) prevails till the end tof time!
    UMNO must look for creative ways to continue fulling the ordinary Malays.
    These ordinary Malays have no God but UMNO. God doesnt listen to them. Only UMNO can save them form peril.
    So, UMNO now must act to save these ordinary uneducated kampung UMNO folks.
    These uneducated ignorent UMNO elderly folks will prefer death than seeing UMNO ship sinks.
    The only organization (the holly book) they submit to is UMNO.
    UMNO’s death is the death of these uneducated old folks.
    PKR, PAS and DAP can try to recruit these old Malay folks to become their members instead.
    But that’s not going to be so easy.
    May be PR governments can save 50% of these old uneducated ignorent kampung UMNO folks and the dirt poor
    uneducated malay folks in the cities.
    But UMNO now must act to save the other 50%.
    UMNO now must compete (with opposition/PR) in reaching out to these folks with an open and sincere heart.
    We must accept these old / uneducated/ ignorent / poor folks as our BROTHERS. aND MINGLE WITH THEM REGULARLY.
    Listen to them and solve at least some of their problems SINCERELY AND UNCONDITIONALLY.
    Organize at least one fun activity (like visiting a library, sports competitions,
    dance competitions, legitimate / decent karaoke competitions / debating competitions) every month.


    We cant afford to see the ultimate death of these huge number of UMNO folks.
    The educated Malasyians (both from government and opposition) now must act to save the old
    ignorent uneducated UMNO folks.
    By the way, one way to educate these old ignorent UMNO folks is to send them to one different
    country (i.e. overseas) each year for ATLEAST one month (MAY BE STUDY TOOR) and see for themselves how things work in other countries.
    Seeing Mekka for two-four weeks is not sufficient to educate onself.

  22. #22 by anakpompuan on Friday, 24 October 2008 - 5:19 pm

  23. #23 by badak on Friday, 24 October 2008 - 5:24 pm

    All this is just rubbish… It will be just like local councils sitting.Local council will call for any objection if there is a new project,But even before the meeting can be held.The project had already started.
    For this PAC inquiry, the commision had already been paid.Booking fees has alsio been paid.To me it is just a waste of time.This is just an UMNO led BN Government wayang only.

  24. #24 by wanderer on Friday, 24 October 2008 - 5:36 pm

    Emily Pratt;

    I did’nt want to be blunt, you can almost read between the lines what I said. The whole process of rushing this deal is…you know why.

  25. #25 by teacher on Friday, 24 October 2008 - 5:41 pm

    Please lah we don’t need these expensive machines to do search and rescue.Thats all these helis will do.We are not going to protect our borders as we are made to believe.Protect our borders from whom???? Nobody is interested in attacking us. This purchase is for pride and also to spend the ppls money so someone along the gravy line can make some million of the rakyaats$$$$$$.
    By all means use the money for development and helping the ppl. In this difficult times being prudent is the keyword, but does this overfed govt know how to be prudent and look after the ppl. I say NO NO NO>They only care for themselves.Sad but we put them there so now we have to pay the price

  26. #26 by bclee on Friday, 24 October 2008 - 5:47 pm

    scrap all useless buying on all government expenditure.
    save for the bad time coming soon.
    USA,UK EU zone all in deep recession now.

  27. #27 by cazz on Friday, 24 October 2008 - 5:50 pm

    Who is out there to safeguard PAC? Would family members of the PAC crews get kidnapped? Life threatened?

    You know, PAC could be dealing with maphia who has access to C4 explosive, who could twist people’s arms into giving false testimony.

    I am particularly worried.

  28. #28 by Citizen Smith on Friday, 24 October 2008 - 6:19 pm

    Prasun Sengupta’s letter in Malaysiakini is a far better explanation of the dynamics behind the procurement process than MINDEF was able to produce. In it he outlines the importance that the RMAF placed on OEM MRO support vis third-party support. Only Eurocopter has a in-country MRO centre so this would be an obvious advantage.

    This suggests that the RMAF is unhappy with the services provided by its primary domestic MRO supplier, AIROD and ATSC who support pretty much everything else in the RMAF inventory from the C-130 Hercules to the Su-30MKM. If this was the case, why wasn’t this criteria adopted for the recent purchase of both the Aermacchi MB339C and Pilatus PC7 MkII trainers?

    More directly related to the LOI is the RM 2.3 billlion value being bandied about since the Eurocopter tender was 1.1 billion. Somewhere between the opening of the tender documents and the LOI, the cost seems to have ballooned to double its original value. The PAC needs to determine how and why this is the case.

    If the original tender price was a lowball bid, i.e. the tenderer has no intention of delivering at that price, then Eurocopter should be excluded and blacklisted from all future governmen tenders. OTH if the creep from MINDEF, then they need to explain why it has occurred. If tender did not fulfill user requirements then it should be invalidated and the responsible parties castigated for wasting valuable time and money.

    I disagree that now is not the time to procure a replacement for the Nuri. The latter is long past due for a replacement or major upgrade. A newer helicopter should increase availability and provide critically needed night and adverse weather operational capability. The helicopter fleet is one that plays a direct role in the life of the rakyat as they provide the only emergency airlift capability in the country. They are a worthy investment compared to a lot of the other rubbish the government is spending on.

    I do however want my money to be properly spent so that the Armed Forces and ultimately we the rakyat get the most benefit.
    If we hold Eurocopter to their tender price, we could get 24 EC725s and that would be a very good thing indeed.

    Offset programmes are a waste of time and money since they come directly out of the contract price. We pay them to invest our money back in our country. That IS stupid.

  29. #29 by Bobster on Friday, 24 October 2008 - 6:19 pm

    Mr Jis telling all Malaysians off:-

    Shut dup all of you ,,, this is between me and AAB.

    Case considered close under OSA!

    Talk some more send you to ISA!

    My money is my money, your money is my money!

    SO Shut d hell dup lah!

  30. #30 by HJ Angus on Friday, 24 October 2008 - 6:29 pm

    RM1.2bil in variation orders?
    I get it – the first bid not include motors, rotors and avionics!

  31. #31 by js on Friday, 24 October 2008 - 6:41 pm

    Government is so silly to decide on such purchase without considering other important project benefited the rakyat such as monorail for Penang. BN is sick!!!

  32. #32 by Citizen Smith on Friday, 24 October 2008 - 6:54 pm

    You can’t sell a helicopter with those things and the EC725 is a pretty nice helicopter even in a basic configuration. The 2.3 billion price tag would be for a gold-plated CSAR version similar to the EC725 RESCO supplied to the French Air Force which has lots of equipment that is mission specific and really has no benefit for the missions performed by the RMAF on a day to day basis.

    The pressing issue now is to replace the Nuris as quickly as possible. The target date is now 2018 to phase out which is IMO much too long. Since Treasury has already given the green light to proceed, there must be enough money for this and if we hold Eurocopter to the tender price then we can afford 24 helicopters, enough to replace ALL the Nuris on a 1:1 basis and we can phase out the Nuri by 2012.

    Now THAT would be nice legacy for the current Defence Minister to leave behind. Chances are we shall be using these helicopters into 2050.

  33. #33 by dawsheng on Friday, 24 October 2008 - 7:04 pm

    We have space program but we can’t build our own helicopters.

  34. #34 by bclee on Friday, 24 October 2008 - 7:07 pm

    stocks in euro all limit down today.
    more downward pressure now.

  35. #35 by bclee on Friday, 24 October 2008 - 7:13 pm

    dow jones,S&P,Nasdaq all limit down today open in US.
    tomorrow another round of selling off for Asian session.

  36. #36 by madmix on Friday, 24 October 2008 - 7:17 pm

    Note that the Euro has fallen 10% against the RGT since the time the copter deal was cut. So do we get a 10% or 216 million discount in Ringgit terms or do the middleman simply pocket the extra windfall profits?

  37. #37 by lopez on Friday, 24 October 2008 - 7:22 pm

    Now now, who says we dont have enough of wannabe experts in bbolihland all just too eager to be service to the nation and pretend to know all.

    Let the REAL experts speak and let the people listen and understand with an all open mind.

    There is already not enough money to keep the economy afloat, the is the last thing we need ..going bankrupt for paranodial mental ordeal of able to defend oneself….and running crazy of hypothetical warmongering thoughts and fright.

    When you are small and tiny dont act tough but instead make friends, example dont take sides in other people wars

    it is never enough to arm the military and history informs us you can never win any war worst when some people knows it and take advantage of it at the expense of their own mate in arms.
    When things go sour , you may wonder if these guys are still around behind the trenches with you.
    The more enemies you make the more vulnerable your nation to threats and alike.

    The wise use their brains the stupid uses the hands

    So what type are you?

  38. #38 by taiking on Friday, 24 October 2008 - 7:28 pm

    You see in other countries things are much much worse. We are ok. Not too bad actually. I mean dont compare with singapore or korea or taiwan. We are different. Here we have fast track system to everything and everywhere provided that you are umnoputras. There they dont have such system. No way they can compare with us. Bill Gates not a problem really. We can produce a bill gate out of any umnoputra in half the time bill gate took. Honest.

  39. #39 by kerajaan.rakyat on Friday, 24 October 2008 - 8:05 pm

    “All government contracts to go through public tender.
    A saving of at least RM5 billion per annum is estimated
    to be achieved from this.” … DSAI (Pakatan Budget 2009)


  40. #40 by Hue on Friday, 24 October 2008 - 8:59 pm

    Are there members of the Opposition on the PAC? I know that the in the British Parliament the PAC is made up of all parties.

  41. #41 by Hue on Friday, 24 October 2008 - 9:01 pm

    Madmix says “Note that the Euro has fallen 10% against the RGT”. Why hasn’t the value of the ringgit dropped? Almost everybody else’s has.

  42. #42 by wtf2 on Friday, 24 October 2008 - 9:08 pm

    if the judiciary is subservient to silly government, what more can you expect from the PAC, ACA, polis – pure rot – result of NEP- real manifestation of the Peter principle.

  43. #43 by Godfather on Friday, 24 October 2008 - 9:15 pm

    With stock markets dropping 50 – 70 pct in most jurisdictions, where else is UMNO going to raise money for the extended campaign period ?

    The Penang 2nd Crossing project was never going to be shelved as the bumiputra sub-contractors had already been promised the subcontracts 2 years ago, and they are now screaming bloody murder….taking away the Eurocopter deal may be equally unpalatable.

  44. #44 by Damocles on Friday, 24 October 2008 - 10:46 pm

    And yet we hear the outgoing PM asking for more time to carry out reforms?
    And yet there are people who are still willing to listen to such cock & bull stories!
    So, when will Malaysians be more skeptical of this government?

  45. #45 by katdog on Friday, 24 October 2008 - 10:57 pm

    Original tender by Eurocopter was RM 1.1 billion. I hope that the PAC will reveal to the public to whom the additional RM 1.2 billion is going to.

    Lets hope they won’t claim it to be upfront payment for 30 years of maintainance. Or say its ‘reasonable’ commission payment.

  46. #46 by lbl on Friday, 24 October 2008 - 11:24 pm

    It is hoped that the PAC will call Kapt(B) Dato’ Zahar Hashim to give his testimony on the purchase of the 12 Cougar EC 725 helicopter purchase.

  47. #47 by HJ Angus on Friday, 24 October 2008 - 11:37 pm

    The mystery of the missing RM1.2bil is quite serious and shows how tender exercises can be manipulated by seasoned operators.
    But this Eurocopter deal pales in comparison with another helicopter deal that was posted on LKS’s blog on 14th October – how come the PAC is not looking into that RM20bil contract?

  48. #48 by passerby on Friday, 24 October 2008 - 11:55 pm

    Now that the opposition is in a very good chance of winning the next election, the opposition should issue a warning to Eurocopter that they should not involve in any under payment to anyone in any kind or appoint any intermediary that has nothing to do in the normal sale of the equipment. Such deal must be from principal to principal. The opposition will take any action once they have become the government.

  49. #49 by justice6 on Saturday, 25 October 2008 - 1:06 am

    Uncle Lim… can tell us if this email is true?….

    Subject: Fwd: SCAM by KWSP
    Date: Wednesday, October 22, 2008, 11:35 AM
    This is another method for KWSP to steal our money!
    Remember during Budget 2008 announcement last yr, our Finance Minister (cum PM) announced that in order to assist KWSP members to reduce the burden in housing load repayment, KWSP will allow monthly withdrawal from members’ A/C II for the purpose?
    Sounds like a nice goodies!
    When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & instalment details
    from yr bank and the bank a/c # you like KWSP to bank the monthly
    withdrawal into it. KWSP will approve yr
    application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly instalment amt. Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c!
    Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!
    The withdrawal plan is actually a SCAM!
    This is how the KWSP SCAM works…….
    Assuming you have RM100,000 in yr A/C II and yr housing loan’s monthly instalment is RM2000/mth.
    KWSP will approve yr application of withdrawal from yr A/C II of RM100,000 and pay you RM2000/mth for the next 50mths.
    Everything appears to be in order BUT…….

    What KWSP didn’t highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from yr A/C II! It appears to be transfered to an unknown a/c to effect the monthly payment from therein.

    The impact to the member are as follows :-
    1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose >RM4,000 in dividend during the 1st year. Based on the above example you will will lose >RM10,000 over the 50 mths period!
    2. There is no statement to account for the amt approved vs amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt!
    Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that’s RM1 BILLION) over the period!
    Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost >RM4,000.
    100,000 members would have lost 100,000 X RM4,000 = RM400,000,000 (RM400 MILLION) in One Year!!!
    If you’re a victim of this KWSP SCAM, would suggest you call yr MP to raise hell in Parliament!
    For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.


  50. #50 by just a moment on Saturday, 25 October 2008 - 2:28 am

    Try this for size, I had a friend who once work for our military airbase in Kuantan. This was the time when our Goment was debating if we should have English or Bahasa on subjects like Math, Science thinggy?

    Anyway, some years before, he was supposed to translate the maintenance mannuals into Bahasa so that our local Malays can understand. It was all fine until they come to the part propellar.You won’t believed, they search the entire Bahasa dictionaries and just couldn’t find the word, there just isn’t such word for it, should it be from: kipas tangan? kipas pusing? finally I think they settle for kipas engin until today, anyone care to confirm this?
    Anyway, the money needed to maintain the fleets of airplanes were staggering simply because we pay ‘consultant fees?’ On top of this, our fantastic Goment still think Bahasa is the way forward…..Emmm when will they ever learn,
    when will they e…..ver …learn.

  51. #51 by jacksojulian on Saturday, 25 October 2008 - 2:55 am

    I really doubt the capability of Najib to lead the country’s finance portfolio, nearly dumping 2.3 billion for “over value” hardware, now he wants to use EPF monies 5 billion to buy “under value” stock from KLSE. Well, the whole world stocks are now “under value” except oil (price falls but still over value), how is he going to justify there is stock is under value in KLSE?

  52. #52 by jacksojulian on Saturday, 25 October 2008 - 3:11 am

    Instead of buying combating helicopter, the Government should use the money to buy more non-combating helicopter which is very much cheaper to patrol our country’s coastal lines especially East Coast of Sabah and Strait of Melaka in order to eliminate millions of aliens from illegally entry to our country.

  53. #53 by charlesbronsonjr on Saturday, 25 October 2008 - 4:22 am

    some percent of the commission for the third party will go into UMNO party account. so there wont be any charges of corruption or if there is one,the charges will be dropped like eric chia perwaja case,get it?UMNO had been similiar to Marcos more each day.It takes years to recover back Marcos corrupted money from overseas,i wonder how long will it take here to investigate or investigation stopped half way because involve .ministers,MB,UMNO members, taking long time ,wasting time and resources?, corrupted practice like this has been in BN goverment especially during mahathir era i.e taking Bank Negara’s reserve fund for projects and gave it to UMNO members,then blame it on soros the jews when Bank Negara not enough money to defend soros attacks.i remember hearing DrCSL of MCA quoting “what do my personal life got to do with politics?” is similar to “what do my morality have to do with politics?”if almost all MCA members male and female think that having leaders like him is more easily for them to “cari makan” than i think this the end for MCA.

  54. #54 by Jeffrey on Saturday, 25 October 2008 - 7:46 am

    Should we pin our hopes of transparency on PAC’s investigation? How many opposition members are in it? Will it be efficacious being chaired by BN’s Datuk Seri Azmi Khalid and limited in time and frame of reference? Agree that 2 days is too short a time and summoning officials of the Defence Ministry and RMAF is insufficient.

    What happened to RM4.6 billion Port Klang Free Zone scandal issue even bigger than the RM2.3 billion 12 Cougar EC725 helicopter deal?

    The last time PAC reported they were dissatisfied with the outcome of investigations. I thought there independent auditors (was it Price WaterHouse??) appointed at beginning this year to audit. What is the outcome?

    What about PAC’s earlier investigation into Middle Ring Road II?

    I understand PAC will besides EC725 helicopter deal also investigate the other mega deals highlighted by Opposition in the 2009 budget debate – Maybank purchase of Bank International Indonesia (BII) and RM11.3 billion high-speed broadband contract to TM Bhd?

    Has PAC the resources and expertise to do all these? Wouldn’t investigation of BII’s acquisition be closing the barn door after horses have bolted?

    On record has PAC done anything to prevent consummation of scandal tainted mega deals or has its investigations so far brought any one especially the big wigs to account?

  55. #55 by k1980 on Saturday, 25 October 2008 - 11:29 am

    dawsheng Says:
    Yesterday at 19: 04.44
    We have space program but we can’t build our own helicopters.
    We have space tourism program and we can buy other people’s helicopters.

  56. #56 by chengho on Saturday, 25 October 2008 - 1:37 pm

    for every malay middleman there is non malay business owner
    every body happy ,Malaysia is a fair country what is the problem..

  57. #57 by Emily Pratt on Saturday, 25 October 2008 - 1:48 pm

    V-22 Opsrey, now that is a kewl baby. Why didn’t our army guiz consider this?

  58. #58 by Jimm on Saturday, 25 October 2008 - 2:09 pm

    rosmah …. how ?
    cannot going for big shopping already oh ?????

  59. #59 by Godfather on Saturday, 25 October 2008 - 7:10 pm

    chengho Says:

    Today at 13: 37.52 (5 hours ago)
    for every malay middleman there is non malay business owner
    every body happy ,Malaysia is a fair country what is the problem..

    Yup, just look at me….my bisnes partner is Kasim Amat. We are in the AP bisnes. He lobbies for the APs, he is nominally the major shareholder, but I am beneficially the major shareholder. I also run all the car outlets. Now everybody happy….but I also worry because Kasim Amat might now “disown” the fact that I am beneficially the major shareholder, and with an UMNO person as the CJ, I don’t think I can win the case in a court of law.

  60. #60 by undergrad2 on Saturday, 25 October 2008 - 11:16 pm

    “I am beneficially the major shareholder, and with an UMNO person as the CJ, I don’t think I can win the case in a court of law.”

    I won’t be too sure if I were you.

    You’ve forgotten what a lap dance by an SYT could do to make the CJ reverse his decision before he announces it.

  61. #61 by k1980 on Saturday, 25 October 2008 - 11:32 pm

    Bijan paid a sum of RM2.3 billion for 12 Eurocopter EC727 Cougar helicopters while Brazil paid US$1.2 billion for 50 units of the same model. Based on the price paid by Brazil, for RM2.3billion, Malaysia should be getting close to 100 EC727 Cougars. So bijan, don’t tell me the 12 EC727 Cougars for Malaysia come with gold-plated toilet seats for the pilot while the Brazilian ones don’t have toilets

  62. #62 by human1 on Sunday, 26 October 2008 - 12:59 am

    These are allegations hinting potential corruption behind the deal, the Defence Ministry ought to answer them in Parliament to clear doubts in the air:

    1) The bid price from Eurocopter, including delivery charges amounts to Euro 233,345,390, which is around RM1.1 billion. Why has total price balloned becoming RM2.3 billion? Has the other half RM1.2 billion allocated to middleman for maintenance service over the next 40 years?

    2) What is the background of the company of Salleh Majid, who claimed to be the local representative for Eurocopter? Rumour says Abdullah’s son Kamaluddin has a cut in this deal. Has there been any partnership between him and Salleh Majid in winning the bid?

    3) Rumour says Malaysia is paying much more than Brazil, for the same specifications of aircraft. India will be getting more aircrafts (197 as opposed to 12) than Malaysia, for the same amount of money USD600 million, should an Indian watchdog not cry foul over the controversy in engaging local representative to broker defence deal which the Indian law disallow, forcing the Indian government to cancel the deal. Has Eurocopter EC725 been overpriced?

    4) The decision has irked the other local representative who has lost the bid, chairperson of Mentari Services Sdn Bhd, Capt (rtd) Zahar Hashim who represent canadian-based Kelowna. He lashed out at Najib that the decision was made while the evaluation process has yet to complete. He accused the lack of physical sites evaluation and test flights in accordance to standard procedure, while the letter of intent being signed 2 days before Najib swapped portfolios with Abdullah.

    We know vast spending in defence deal will not spur domestic economy, but it will reduce significant federal reserve.

    Now let us look at the government procurement bidding process. In reference to the NEP policy, having a Malay representative, middleman or broker will increase the success rate in winning the bid of all government procurements or projects. Yes, this includes defence ministry and the security of our nation is at the hands of the broker, if not at stake.

    In the case of Eurocopter EC725, only handful of powerful and well-connected quarters will get to reap the monetary benefit as majority of the people are not “big boys” enough to be involved directly in the large-budget defence industry.

    Therefore, it is time to review the bid process of having brokers in ministry like defence to curb more fishy deals in the future.

  63. #63 by Godfather on Sunday, 26 October 2008 - 8:59 am

    “You’ve forgotten what a lap dance by an SYT could do to make the CJ reverse his decision before he announces it.”

    Ah, but you’ve also forgotten that for every SYT that I can muster, the other side can muster hundreds of SYTs. The more the merrier, and of course I lose.

  64. #64 by chiakchua on Sunday, 26 October 2008 - 9:38 am

    Is there such a need to buy so hgih tech helicoptors? And contract out their regular maintenance to who? Cronies again? For never ending syphoning of fund? Or the manufacturer who would continue to make millions from our taxpayers’ money.

    Its better to scrap the purchase and use that money to help all the poor under the ‘new economic agenda’!

    Who are we going to ‘war’ against with?

    This is how the UMNOputras sucked money out of the national coffer; and ‘cheated’ the poor Malays to keep supporting them by threating them the non-Malays will take everything away from them if they allow them to have an equal partnership in the administration of the country.

    Its high time Parti Rakyat Sarawak join SAPP to be independent MP to ensure the 2-party system work for the best interest of the rakyat.

  65. #65 by UzMiNoOnist on Sunday, 26 October 2008 - 5:14 pm

    Even a dumb Malaysian can smell rat in this deal:
    Pure corruption

  66. #66 by Godfather on Sunday, 26 October 2008 - 10:44 pm

    “Who are we going to ‘war’ against with?” Chiakchua

    When there is no war, we must create one, or even several. These give us the right to buy attack helicopters, Sukhoi fighter jets, and Scorpene submarines.

    Where there is no river, create a river so that we can build a bridge. Where there is nothing but virgin jungle, create a hydroelectric dam, so that we can log the virgin jungle.

  67. #67 by undergrad2 on Monday, 27 October 2008 - 12:54 am

    “Ah, but you’ve also forgotten that for every SYT that I can muster, the other side can muster hundreds of SYTs. The more the merrier, and of course I lose.” Godfather

    There is a limit to what even a pedophile can take! We are talking of a man in his 60s who has been there, done that!

  68. #68 by undergrad2 on Monday, 27 October 2008 - 12:58 am

    Zaki has always been a skirt chaser but lately he has discovered that underneath the skirt it is the same old thing – old or young!

  69. #69 by maximus07 on Monday, 27 October 2008 - 3:43 am

    Dear Mr Lim Kit Siang,

    I’m sure this will shed some light to who might the middle man be for the EUROCOPTER deal….

  70. #70 by yhsiew on Monday, 27 October 2008 - 6:52 am

    Malaysia ditches Eurocopters on gloomy economic outlook

    KUALA LUMPUR, Oct 26 – Malaysia will ditch the RM2.3 billion Eurocopter defence deal as it battens down to face the global economic storm, sources said today.

    Read More:

  71. #71 by riverman on Monday, 27 October 2008 - 1:03 pm


    That’s probably why people fighting so hard to be elected.
    The blame shall also be on those who are qualified but could not spare time to be involved in politics or simply because there could not tolerate the rough and dirty politics – self interest first.

    May be it is the time to have a new political party which comprises of profesionals and people who think and act like one – party profesional negara. But how to get support from the village folks whose needs and thinking are totally different from u and me. They still ask for cash in order to gather their supports. That is where our current is wrong, this people should be aided in the sense of job or business opportunity so that they could fend themselves instead of asking for cash. I always think those who are not able to walk – may be to be given job as cashier – toll cashier. The blind can do well as telephone operator. Or haemodialysis patient can be hospital operator. We must accept that they are handicapped and make full use of their disability . may be it is time for the healthy people to give way to the handicapped one on certain job scope.

    By the way the profesional shall act like profesional and administer the country profesionally. Do not bicker in the parliment like the present set of MPs.


  72. #72 by DingDongBell on Monday, 27 October 2008 - 10:14 pm

    When It comes to purchase of big ticket item and awarding of big time project, the bandit will always show, it is so obvious that the country is being run without a system of check and balance.

    Shame on you ! A country run by crooks. Sigh …….

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